Amid ongoing feud between the airline’s promoters, IndiGo CEO Ronojoy Dutta on Thursday said there is “zero impact” on the carrier right now as they are on the same page over the airline’s strategic direction.
The differences between co-founders and co-promoters — Rakesh Gangwal and Rahul Bhatia — came to the fore in July after Gangwal sought market regulator Sebi’s intervention to address alleged corporate governance lapses at the company. They are the promoters of Inter Globe Aviation which operates IndiGo, the country’s largest airline in terms of domestic market share.
About the feud, Dutta said as far as the airline is concerned, it was only directly involved in the Related Party Transactions (RPTs).
“That has been resolved completely. Now that RPTs have been removed from the table, we have no more interest in this matter,” he told.
In the wake of the allegations, the company has also come under the lens of Sebi and the corporate affairs ministry.
“Right now, it (promoters’ feud) has zero impact. When the RPT issue was there, we were involved. Now, they are doing what they do, and that doesn’t affect us at all,” he said in response to a query about the warring promoters.
According to Dutta, there are some issues between the promoters but that is not affecting the airline.
“If two of the promoters are having a side discussion on some agreement signed 12 years ago, it doesn’t affect us at all. It is not an overhang on the company because they agree on the direction of the company. There is such unity of view on the strategic direction of the company, really there is no controversy,” he emphasised. On whether there are concerns about corporate governance ways at the company. Not a concern because the only governance issue was that of RPTs. Otherwise, we are functioning smoothly as a well-orchestrated board. Very professionally run,” Dutta replied in the negative.
On October 1, InterGlobe Enterprises and Bhatia sought arbitration proceedings in the shareholders’ agreement, dated April 23, 2015. The pact was amended on September 17, 2015. The agreement was executed between Bhatia’s Inter Globe Enterprises Group (IGE Group), Gangwal, the Chinkerpoo Family Trust, Shobha Gangwal – the RG Group – and Inter Globe Aviation.